IMDEX LIMITED — Investor Presentation 2008

Jun 17, 2008

18 June 2008

Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001

Dear Sir/Madam

Merrill Lynch Australian Emerging Companies Conference

Please find attached a copy of the Imdex Limited presentation being made at the Merrill Lynch Australian Emerging Companies Conference.

Yours faithfully

Imdex Limited

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Paul Evans

Company Secretary

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Imdex Limited ACN 008 947 813 ABN 78 008 947 813 Level 1 15 Rheola Street, West Perth Western Australia 6005 PO Box 1325 West Perth WA 6872 Phone +61 8 9481 5777 Fax +61 8 9481 5377 E-mail imdex@imdexlimited.com Page 1 of 1

Quality Endorsed Company ISO 9002 LIC: QEC 2807 Standards Australia

Imdex Limited Merrill Lynch Australian Emerging Companies Conference 18 June 2008

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Disclaimer

This presentation has been prepared by Imdex Limited (“the Company”). It contains general background information about the Company’s activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. The distribution of this presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions.

This presentation is not (and nothing in it should be construed as) an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security in any jurisdiction, and neither this document nor anything in it shall form the basis of any contract or commitment. The presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.

The Company has prepared this presentation based on information available to it, including information derived from publicly available sources that have not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, correctness or reliability of the information, opinions and conclusions expressed.

Any statements or assumptions in this presentation as to future matters may prove to be incorrect and differences may be material. To the maximum extent permitted by law, none of the Company, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

Introduction to Imdex

1. Defined and focused - our business is the manufacture , supply and distribution of high quality drilling fluids and down hole instrumentation .

2. Excellent position – historically high long term demand for more minerals, oil and gas underpinning buoyant global exploration/development activity.

3. Global Reach – eight acquisitions in recent years have created true international reach and geographic diversity and technology leadership.

1. Rapidly expanding customer base including global supply and distribution agreements with Sandvik, Boart Longyear, Major Drilling and Layne Christensen.

5. Extracting benefits from new products, synergies and expanded manufacturing capability.

6. Building Shareholder Value – Management delivering on our growth strategy.

1. Robust trading conditions continue globally.

Corporate Strategy – Global Reach

Consolidating market presence throughout mineral rich regions in Africa, Latin America, Asia Pacific and Canada

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Americas Europe
East Vallentuna (Sweden)
Calgary Sussex
Timmins Riegel
Aktau (Kazakhstan)
Africa Asia Pacific
Brisbane
Johannesburg
Perth
Santiago Kalgoorlie
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Exposure to High Growth Industries

Resources

• Record minerals exploration spend and increased production activity

• US$13.1B in 2008 - up 25% on US$10.5B in 2007

• Strong demand for drilling fluids and down hole instrumentation

• If more drillers available, demand would be even stronger

• Mining capacity constraints

• Deeper and more complicated ore bodies

• Longer timeframes from discovery to production

• Rising exploration, development and production costs

Exposure to High Growth Industries

Resources

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�
Estimated Exploration Spend Worldwide (Non Ferrous) Increased exploration by
US$ Billions commodity:
$14.0
Gold 42%
$12.0
Base Metals 36%
$10.0 Diamonds 10%
$8.0 Uranium 9%
PGM’s 3%
$6.0
$4.0
�
Uranium exploration
$2.0 US$936m, up from
US$92m four years ago
$0.0
Data from the Corporate Exploration Strategies report of the Metals Economics Group – March 2008
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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Exposure to High Growth Industries

Resources

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Worldwide Exploration Budgets
by Region 2007 (%)
Pacific / SE Asia 4%
United States 8%
Minesite
Australia 12%
Africa 16% Grass roots
Rest of World 17%
Late stage
Canada 19%
Latin America 24%
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Worldwide Exploration Budgets* by Stage 2007 (%)

• In Latin America, 83% of expenditure is undertaken in Mexico, Peru, Chile, Brazil and Argentina

• In Africa, major exploration destinations include South Africa, DRC, Angola, Tanzania, Botswana and Ghana representing two thirds of Africa’s total spend

• Late stage exploration exceeds grassroots exploration for the third consecutive year

• 1,980 companies’ budgets totalling US$11.4B. Source: MEG, Mar 2008

Exposure to High Growth Industries

Oil & Gas

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Oil & Gas Exploration Spend
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30,000 30%
Exploration spend as a % � Shows declining trend in
of total E&P spend
25,000 25% exploration over last 10-12
years
20,000 20%
�
Recent activity showing a
15,000 15% reversal of that trend
10,000 Top 25 IOC exploration 10% �
spend (excluding national Upswing will be constrained
oil companies) by availability of rigs and
5,000 5%
experienced personnel
0 0%
Source: SEB Enskilda 2007
$millions
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007E
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Exposure to High Growth Industries

Oil & Gas

• Strong investment into exploration and development of new reserves.

• Delays experienced due to lack of resources.

• Interest in new exploration in all parts of the industry has not been higher for 30 years. Complex exploration places a premium on technologies that improve performance and reduce risk.

• The industry will have to drill more. Fragilities in the oil and gas supply chain are clear indicators of this.

• Imdex is well positioned to benefit from this long-term opportunity through our developing technology portfolio and competitive drilling fluids.

Our Critical Skills

• Quality people

• Industry respected operational personnel

• Experienced locally based management

• Customer service

• Strong brands

• IP ownership

• Own manufacture = control of supply

• Scalability

• Low labour component

• High revenue per employee

• Strong global distribution channels

• Quality products

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Drilling fluids research and development
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• Powerful R&D capability

Our Customers

Global distribution and supply agreements with:

Oil and Gas clients:

And a broad range of medium to smaller sized clients globally

Proven Growth Model

• Successful

transformation expansion 2005-2008

• Growth achieved via

non core asset divestments and eight acquisitions

• Maximising opportunities through consolidation, synergies and additional resources

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Resources Oil & Gas
focus focus
South Africa Asia Pacific Canada Caspian Sea Latin Global Global
01.08.05 01.07.07 Region America 01.08.06 01.05.07
01.07.07 01.11.07
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Corporate Strategy - Product Model

Continued operational earnings improvement

Two global operational divisions:

� Drilling fluids and chemicals

• Building significant market share in the supply of drill fluids to international oil and gas industry

• Manufacture and sell

• Cool and lubricate the drill bit

• keep the drill hole open and return cuttings to the

• surface

• Consumable

� Down hole instrumentation

• Manufacture and rent/sell

• Unique/leading technology

• Speed and accuracy of data

• Minimum disruption to drilling process

• Complementary to Fluids business

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Demonstration of Reflex tools to
customers
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Corporate Strategy

Down hole instrumentation – oil & gas industry

• We are penetrating the oil and gas down hole instrumentation market

• Estimate market size US$500m per annum

• We provide world leading technology to major independent service providers to compete with Scientific Drilling, Gyrodata

• Target INS – true inertial navigation system with north seeking capability

• GyroSmart – MEMS based, solid state gyro

• High Temperature Multishot Tool – multishot survey instrument

• Drop Tool – stand alone gyro system

Oil & Gas drill rig

Proven Growth Model

• Extracting benefits from new acquisitions and expand manufacturing capability

• Suay

• Poly-Drill

• Southernland

• SEG

• Releasing new products/tool improvements

• Disposal of non core SGE investment

• Migrating SEG customers to rental model to expand future profits

• Additional profitable bolt-on acquisitions

• Accessing new markets - oil and gas

SEG acquisition update

• Imdex acquired German based System Entwicklungs GmbH (SEG) in January 2008.

• Majority of existing customer purchase orders successfully migrated.

• Adopting Imdex’s preferred rental model will build a better long term sustainable business and profits.

• Transfer of current SEG sales contracts to rental model primarily responsible for reduced FY08 revenue guidance by 3% ($152m to $147.5m) and EBIT down 7.5% ($42m to $39m) – a one-off short term adjustment for long term recurring revenues and stronger profits.

Managing Growth and Risks

Operating in an environment of increasing costs present certain challenges. Imdex’s strategy includes the following:

• Diligent cost control. Where applicable, pass costs on through price increases

• Expand/build manufacturing facilities in local jurisdictions – reduces freight/shipping costs

• Continue to invest in R & D – tools easier to operate, multi functional leading to increased productivity for customers

• Continue to build strong customer relationships

• Increase competitive advantage and points of differentiation

• Continue to implement rental model in down hole instrumentation

• Diversify down hole instrumentation into oil & gas industry

• Business model means profit per employee highest amongst peer companies. This strategy will continue.

Management Depth

Strong operational management

Gary Weston Group GM – founder of AMC and over 30 years experience, Imdex and Baroid Derek Loughlin Divisional Manager - Instrumentation – 19 years experience, Boart Longyear and others Esmond Lange Divisional Manager - Fluids – 25 years experience with Schlumberger Peter Jacobs GM Reflex – 21 years experience, Boart Longyear and others Richard Parfitt V endor of Chardec, ex Schlumberger. Full time – Product Development Dag Billger GM Flexit/R & D Manager – PhD, qualified scientist, MEMS gyro expert Peter Wright GM Latin America – over 20 years, incl Latin America, African experience with Ausdrill Nick Santarelli Oilfield Manager – over 20 years industry experience, Baker Hughes and others Joe Barker GM Samchem – 25 years experience, Baroid and others globally

Dieter Goetze Technical Manager, SEG – over 40 years of tech. development, inertial navigation systems Paul Mander Key Account Manager – 17 years industry experience, Boart Longyear and others

Achieving Revenue Growth

Revenue ($M)

Normalised Revenue by Division

Normalised Revenue by Region

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Forecast
Forecast
$160.0 $147.5m
$160.0 $147.5m
$140.0
$140.0
$120.0
$120.0 $59m
$100.0
$100.0 $41.5m
$80.0 $80.0
$60.0 $60.0
$40.0 $40.0
$20.0
$20.0
$0.0
$0.0
FY04 FY05 FY06 FY07 FY08
FY04 FY05 FY06 FY07 FY08
Asia Pacific Africa Americas Europe
Fluids and Chemicals Products and Services
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Fluids and Chemicals Products and Services Minerals Processing

Normalised results include Surtron trading * - Mix of FY08 numbers are estimates only

Strong organic growth

Organic vs. Acquisition Growth ($M)

Normalised Revenue Growth

Normalised EBITA Growth

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+16%
$80.0
$25.0
+29%
$70.0 +24%
$60.0 $20.0 +63%
$50.0
$15.0
$40.0
$30.0 $10.0
$20.0
$5.0
$10.0
$0.0 $0.0
1H07 Organic Acquisition 1H08 1H07 Organic Acquisition 1H08
The majority of our revenue and profit growth has been organic
Normalised results include Surtron trading
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Building Shareholder Value

EPS, DPS and Profits

Earnings and Dividends per Share

Normalised EBITA

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$45.0 Forecast
12.0 c
$39m
$40.0
10.0 c $35.0 31 May 08 (unaudited) $36m
31 Dec 07 Half Year
8.0 c $30.0
(audit reviewed)
$25.0
6.0 c
$20.0 $21m
4.0 c
$15.0
2.0 c $10.0
$5.0
0.0 c
$0.0
-2.0 c
-$5.0
-4.0 c -$10.0
FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08
Dividends per Share Earnings per Share
Normalised results include discontinued operations and
FY08 EPS and DPS based on forecast EBITA of $39m exclude non-operational items
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Normalised results include discontinued operations and exclude non-operational items

Strong Industry Benchmarks

Profit Margins

Forced ranking by EBIT margin, FY08F

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25%
20%
15%
10%
5%
0%
Source: ABN AMRO Construction & Engineering Sector Research dated 31 March 2008
IMD IDL MRM SWK EHL BLY ORI NMS CPB FWD ANG BOL NWH AAX LYL BKN TBG NOD CDD ASL EAL SDM VMG MND WOR AJL GRD UGL MAH RCR TSE HST LEI DOW NFK
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Strong Balance Sheet

Balance Sheet

		Balance Sheet
				Dec 07 $000’s		Jun 07 $000’s				�Strong cash
		Receivables Cash		32,381 16,614		27,806 15,271				�Reduced debt position
		Investment in SGE Inventory		16,746 17,158		16,056 13,839				�Uplift in assets due to acquisitions
		Goodwill & intangible assets Other assets Property, plant & equipment		67,809 965 8,481		62,779 888 13,207				�SGE disposal expected prior to 31 July 2008
		Total Assets		160,154		149,846
										�Commercial bills are AUD based
		Payables		20,909		25,654				with $10m capped at 7% p.a.
		Commercial bills		11,000		12,300
		Bank loan		14,940		15,140				�Bank loan is SEK based and bears
		Hire purchase borrowings		421		2,407				interest at ~7% per annum
		Other borrowings		223		502
		Provisions / Deferred tax liabilities Vendor finance – Chardec		6,905 5,218		7,141 10,088				�Gearing reduced to 24% at 31 Dec 07. Increased to 28% following the
		Total Equity		100,538		76,614				purchase of SEG in Jan 08.
		Debt to Equity D/(D+E)		24%		35%

Our Growth strategy - What will Imdex look like in the medium term?

Strong relationships, leading technology, sustainable growth and attractive end-markets

• Medium Term Objective (3-5 years)3-5 years)years)ears)) � Greater penetration into Oil & Gas markets with Fluids and Downhole Instrumentation

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Past Present (3-5 years)3-5 years)years)ears))
� Greater penetration into
Early Stage Oil & Gas markets with
Minerals 1% 9% Fluids and Downhole
27%
49% 50% Instrumentation
Late StageMinerals 64% � Minerals exploration:
majority of Imdex
Oil & Gas business derived from
Management’s best estimate Management’s best estimate late stage
� Move away from Services
Fluids to reduce fixed costs,
19% 39% capital investment and
Downhole 50% high labour component
Instrumentation 31% 58% � Margin benefit from
Services 3% growing Downhole
Instrumentation division
� Growing downhole
Sell 20% instrumentation rental
Rent business
100% 80%
� Rental business returns
higher margins and is
exposure¹
End-market
1
Profit
Divisional
2
mix
Rent / Sell
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• Move away from Services to reduce fixed costs, capital investment and high labour component

• � Margin benefit from growing Downhole Instrumentation division

• Rental business returns higher margins and is more sustainable

IMDEX Limited

Australia’s Global Drilling Products & Services Company

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Appendix – ASX Details

Current share price Number of shares Market capitalisation	$1.765 183.42m $323.74m
December 2007 Key Ratios
Gearing(D/D+E) Current Ratio(CA/CL)	24% 2.73
Quick Ratio(CA-Inv/CL) Interest Cover(NPBT/Int)	2.17 12.7x

Appendix – Register/Corporate

Top 10 Shareholders
(as at 13 June 2008)
Fiberform Vinidic Holding AB	11.3%
National Nominees	8.7%
HSBC Custody Nominees (Australia)	8.3%
ANZ Nominees	4.5%
J P Morgan Nominees	4.1%
Citicorp Nominees Pty Ltd	3.2%
UBS Nominees	2.3%
Telic Alcatel (Australia) Pty Ltd	2.0%
Wear Services Pty Ltd	1.9%
Cogent Nominees Pty Ltd	1.7%

Ian Burston	Non-Exec Chairman
Bernie Ridgeway	Managing Director
Ross Kelly	Non-Exec Director
Kevin Dundo	Non-Exec Director
Magnus Lemmel	Non-Exec Director
	Contact Details
Level 1, 15 Rheola Street, West Perth
	Western Australia, 6005
Telephone: +61 8 9481 5777
	Fax: +61 8 9481 5377
Email: imdex@imdexlimited.com

Appendix – Directors

Non Executive Chairman, Ian Burston AM

• Appointed Chairman 2000

• Experienced leader of many mining and exploration companies including Hamersley Iron, Kalgoorlie Consolidated Gold Mines, Aurora Gold Ltd and Portman Limited

• Current Chairman of NRW Holdings and Cape Lambert Iron Ore and Director of Mincor Resources

• Well qualified to lead Imdex during this corporate growth phase

Managing Director, Bernard Ridgeway BBus (ACCTG) ACA, AICD

• Appointed MD in 2000

• Led the turnaround performance over recent years

• Key driver of Imdex’s current strategy

• Hands-on management style with extensive expertise in finance, administration, marketing and business development

Appendix – Directors

Non Executive Director Ross Kelly BE(Hons) FAICD

• On the Boards of Clough Limited and the WA Football Commission

• Former Chairman of Clough Limited, Sumich Group Limited, Orbital Engine Corporation Limited, Beltreco Limited and a former director of Aurora Gold Ltd, PA Consulting Services Ltd and the Fremantle Football Club

• Specialised in the mining and heavy process industries

• Consulted to many of Australia's major mining companies and Government

Non Executive Director Kevin Dundo BCom, LLB

• Practicing lawyer – specialising in the commercial and corporate areas

• Expertise in M & A within resources, mining service and financial services sectors

• Current director of Intrepid Mines (formerly NuStar Mining Corporation)

• Previous director of St Barbara Mines and Defiance Mining Corporation

Non Executive Director Magnus Lemmel B.A.

• Appointed in 2006 in conjunction with the Reflex acquisition

• Management consultant based in Brussels, with business interests in Sweden

• Former Senior VP Ericsson Telecommunications, CEO Federation of Swedish Industries and Director General for Enterprise Policy of the European Commission

• European and international network brings significant value to the Board